OREANDA-NEWS. OJSC VolgaTelecom cast the total of its operations for 2006 in accordance with International Financial Reporting Standards (IFRS). The financial statement was audited by independent audit company LLC “Ernst & Young”.

According to audited financial statement OJSC VolgaTelecom key financial highlights in 2006 are the following:

- Consolidated revenues amounted to RUR 24 848,7 million which is by 4,6% more than the same indicator in 2005;

- Profit from operations reduced by 7,5% vs. 2005 and amounted to RUR 4276 million; 

- EBITDA grew by 6,9% - to RUR 8 716,1 million;

- Net profit amounted to RUR 2 134,4 million, which is by 14,8% lower than for the same period of 2005;

- EBITDA margin - 35,1% (in 2005 – 34,3%).

As a result of realization of OJSC VolgaTelecom development strategy in 2006 the Company showed positive behavior of key financial and production performances:

- Aggressive policy in high-tech communication services segment and modern marketing solutions allowed in 2006 for increasing the revenues from advanced communication services by 45,2% from RUR 1 489 million in 2005 to RUR 2 161,5 million in 2006. In the structure of revenues from new services the basic items are Internet access and data transfer network services, their share is 93,7%. In 2006 Internet traffic via leased line and dial-up access grew more than twofold.

- In the reporting period cellular communication services revenues in overall revenue structure grew by 26,2%. In 2006 the revenues of this sector amounted to RUR 3 717,8 million. 

- In 2006 the headcount was optimized, at the reporting period end the Company’s headcount was 40,5 thousand, which is by 16,5 % less than at the year beginning.

- In 2006 the volume of capital expenditures amounted to RUR 8 075,8 million, which is by 14,8% more than in 2005.

- As a result of arrangements to improve the Company’s image for the investment community, in 2006 OJSC VolgaTelecom capitalization grew by 140% vs. 2005 and at January 1, 2007 it was US$1,82 billion.